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IMO Convention on Ship RecyclingShip Recycling for Ship Owners

Dieser Platz ist für Ihr Bild vorgesehen

Know what's inside your ship!

Ship Recycling for Shipowners | | No. 2

Recycling today

Recycling Activities

• little recycling activities in recent years: many ships are “overdue”

• in 2009: 1253 ships recycled

• rising sharply

• recycling facilities operating close to their max. capacity

• 14% of world merchant fleet > 25 years

Main decision driver

• Freight rates (income)

• repair & operating costs

(expenses)

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mGT

Bulker Tanker

Container Other

Scrapping activity 1980 - 2009


Recycling today

Recycling demand keeps rising

• little demand for transportation

• lots of new ships delivered

• already many ships in lay up and “overdue”

• MARPOL :Single Hull Tanker Phase out (2010, latest 2015)

• SOLAS: “Phase out of Classic Cruise Liners“ October 2010

Container outlook 2010*:

• idle container fleet = 1.44 MTEU

• expected to remain until 2013

• new deliveries: 1.54MTEU

• scrapping: 250.000 TEU

* ShipGaz, 2010-01-20


Recycling today

Hellenic Shipping News (2010-02-03):

“Ship Scrapping Activity to double in 2010 says Clarkson”

• > 60 mio GT in 2010

• ~ 30 mio GT in 2009 (N. Cotzias: 34,6 mio GT)

• ø age: 29 years

• ø price: 270 US$ / LDT

• 1812 new ships to be delivered in 2010 (2009 = 593)

* Lloyds List 2010-02-12

Country Ships Prices

India 473 + 43%

China 271 (440*) + 43%

Bangladesh 211 + 38%

Turkey 105 ?

Pakistan ? + 29%

recycling gets

more attractive

& frequent!


Recycling today: Confusion

Lessons learned

• “Blue Lady” - ex “Norway“ (Asbestos, PCB), Germany - Bangladesh -

India

• “Margaret Hill” (improper notification of recycling intention to

administration) detained in UK, sold for further trading after many weeks

• plus many more.......

Reason

• No clear legal instrument in place

• No documentation on hazardous materials

• No cautious selection of Recycling Facility

• Public pressure (blame & shame)

Solution

• comply with future IMO requirements


Adopted by Diplomatic Conference in Hong Kong, May 2009

→ “Hong Kong Convention”

Has not entered into force yet

The only international ship recycling specific legislation

Applicable to:

• all new and existing ships > 500GT

• ship recycling facilities

Key issues:

Inventory of Hazardous Materials

Authorization of Ship Recycling Facilities

Recycling today: “International Convention for the Safe and Environmentally Sound

Recycling of Ships”


Compliance with IMO requirements Inventory of Hazardous Materials (IHM)

Documentation of hazardous materials onboard ships

Different approach for new and existing ships


Inventory of Hazardous Materials (IHM)Table A: Hazardous Materials (mandatory for all ships)

Part I Part II Part III

A-1 x no threshold level

A-2 x no threshold level

CFCs x

Halons x

Other fully halogenated CFCs x

Carbon Tetrachloride x

1,1,1-Trichloroethane (Methyl chloroform) x

Hydrochlorofluorocarbons x

Hydrobromofluorocarbons x

Methyl bromide x

Bromochloromethane x

x

Ozone Depleting

Substances

A-4

Anti-fouling systems

containing organotin

compounds as a biocide

2500 mg total

tin/kg

no threshold level

Threshold levelNo. MaterialsInventory

TABLE A* Materials Listed in Appendix 1 of the Convention

Asbestos

A-3

Polychlorinated Biphenyls (PCBs)


Inventory of Hazardous Materials (IHM)Table B: Hazardous Materials (mandatory for new ships and new installations, voluntary for existing ships)


B-1 x 100 mg/kg

B-2 x 1 g/kg

B-3 x 1 g/kg

B-4 x 1 g/kg

B-5 x 1 g/kg

B-6 x 1 g/kg

B-7 x no threshold level

B-8 x no threshold level

B-9 x 10g/kgCertain Shortchain Chlorinated Paraffins (Alkanes, C10-C13, chloro)

* For materials in this Table with no threshold level, quantities occuring as unintentional trace contaminants should not be listed in

Material Declarations and in the Inventory

Cadmium and Cadmium Compounds

Mercury and Mercury Compounds

Lead and Lead Compounds

Hexavalent Chromium and Hexavalent Chromium Compounds

Polychlorinated Naphthalenes (more than 3 chlorine atoms)

Polybrominated Biphenyl (PBBs)

Threshold levelInventory

TABLE B* Materials Listed in Appendix 2 of the Convention

Materials

Polybrominated Diphenyl Ethers (PBDEs)

Radioactive Substances

No.


Inventory of Hazardous Materials (IHM)Table D: “Exceptions” (to be listed in IHM Part III)


D-1

Computers, refrigerators, printers, scanners,

television sets, radio sets, video cameras, video

recorders, telephones, consumer batteries,

fluorescent lamps, filament bulbs, lamps

x

Domestic and

accommodation

appliances

Properties

TABLE D• Regular consumable goods potentially containing Hazardous Materials

No.Inventory

• This Table does not include ship specific equipment integral to ship operations, which has to be

listed in Part 1 of the Inventory

Example


Compliance with IMO requirements Inventory of Hazardous Materials (IHM) for New Ships

Preparation of IHM by the shipyard

IHM is based on information delivered by suppliers

Supplier provides for each product / material

• Suppliers Declaration of Conformity (SDoC)

• Material Declaration (MD)


Compliance with IMO requirements Inventory of Hazardous Materials (IHM) for Existing Ships

Shipowner

• Responsible for IHM preparation for FiS

• Shall involve “Hazardous Material Expert” (HazMat Expert)

• prepares IHMs on behalf of shipowner

• Nominates a Designated Person for IHM Maintenance

• Shall only make use of authorized ship recycling facilities and cooperate

Flag State / RO:

• Certification of IHM Part I (every 5 years)

Port State Control / Flag State / RO

• Control of IHM Part I


No. 13

Compliance with IMO requirements Inventory of Hazardous Materials (IHM) for Existing Ships

of IHMs for FiS:

• requires uniform sampling and analyses methods

• requires consideration of only relevant HazMats

• prevents conflicts with ship recyclers

• requires expertise

HazMat Expert

• knowledge and experience key for quality of IHM

• GL Academy offers training and approval for

persons with maritime / HazMat knowledge

Certification = open to class

Expert Demand for GL-FIS, global distribution

7 9 9 8

17 14 14 11 10

1215 15 14

29

24 24

2018

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5 5

44

33

55

333

112

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Year

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. o

f H

azM

at

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pe

rts

No. of Experts Americas

No. of Experts Asia

No. of Experts Europe

Green Passport

A.962(23)≠


Compliance with IMO requirements Preparations for recycling by shipowner

Preparation of IHM Prior to Final Voyage

• Completion of IHM (Part I, II and III)

• Minimize the amount of cargo residues/remaining wastes/fuel oil

Selection of Ship Recycling Facility (SRF)

• Authorized & capable to deal with the materials onboard the ship

Ship Recycling Plan (SRP)

• prepared by Ship Recycling Facility in cooperation with ship owner

• IHM is source of information for SRP

International Ready for Recycling Certificate (IRRC)

• in future: to be issued by flag state prior to delivery of ship


Planning ahead: When to prepare? Industry - today

Globally ~ 50.000 existing ships will fall under the Convention

• 5 years for compliance after entry into force of Convention

Many IHMs are under preparation already today (NB & FiS)

• for which GL is ordered to certify

IHM-demand is sharply rising

• decisions towards recycling more frequently

• forward looking shipowners start to prepare today

* picture source from: www.panoramio.com/photos/original/3183818.jpg


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ific

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Planning ahead: When to prepare?

Estimated IHM-certification demand of global merchant fleet

New ships delivered ≥ 13

Existing Ships with Class Renewal 10

New Ships delivered 10



IHM for Existing ships (>500GT):

• Latest prior to recycling

• Best at next Class Renewal (avoid peak demand after Entry into Force)

• HazMat Experts:• key players for IHM for existing ships

IHM for New ships (>500GT):• incorporate IHM in NB-contract

Shipbuilders & Suppliers:• some are “well prepared”

Ship Recycling Facilities:• ~ 30 “good facilities”

Classification Societies• One is fully prepared (GL)

2013*


Planning ahead: When to prepare? Industry - today

Advantages for shipowners in early compliance

• avoiding potential lack of HazMat experts and resources for certification

• gain experience / train staff (efficiency, performance, information...)

• optimization prior to legal requirements

• good reputation – being a role model in Industry and the greater Society

• continuous improvement under ISO 9001 & 14001(if applicable)

• Being prepared for regional actions



Regional actions are being discussed!

Independently from Hong Kong Convention is the

EC “Strategy on Better Ship Dismantling”:

• Prohibits “Beaching”

• Requests member states to:

• sign & ratify the Convention as soon as possible

• apply main elements of Convention without delay

• might require certified IHM for all incoming ships soon!

• Requests independent certification & auditing of SRF

• Recycling Fund – additional port fees

• NL: Unannounced asbestos checks with PSC: RISK

• ...


Arrangements and Pricing

New ships (building contract after entry into force date) = shipyard

• Prepares IHM

• Contracts GL for certification

Existing ships = shipowner

• Contracts HazMat Expert (preparation)

• Contracts GL for certification

Pricing:

• Early bird discounts (declining with time)

• Initial ship = full price

• Sister ships = half price


Conclusions

Recycling demand by Industry is high

Preparations have to start soon (ships >500GT)

Act preventively for:

• being in line with own code of ethics

• show good practice and responsibility

• not becoming target of blame & shame game

• avoidance of detentions, financial loss, legal actions

• Attractive solutions are available

Planning ahead ensures:

• cost-effectiveness

• smooth preparations


IHM – Certification for new and existing ships

• incl. Software Tool for IHM preparation and maintenance of IHM with dedicated

access rights (summer 2010)

International network of Approved HazMat Experts

• Training & approval of HazMat Experts

Consultancy for recycling preparations

Certification of ship recycling facilities

Supervision of recycling works

Consulting services for supply industry (MD)

and shipyards

GL Services – Ship Recycling


Inventory of Hazardous Materials (IHM)

• Part I - hazardous materials in structure & equipment

(existing ships: Asbestos, PCB, Ozone Depleting Substances, Anti-fouling compounds)

• existing ships: to be prepared by HazMat expert on behalf of shipowner

• new ships: to be prepared by ship building yard

• To be updated in case of changes by shipowner

• To be certified by Recognized Organisation (RO)

• Will be checked by PSC and periodic certification by RO

• Part II (wastes) & III (stores) (only directly prior to recycling)

• Major source of information for ship recycling plan

and selection of ship recycling facility


Planning ahead: Identify HazMat-ExpertsCurrent list of GL-Approved HazMat Experts (1)


Planning ahead: Identify HazMat-ExpertsCurrent list of GL-Approved HazMat Experts (2)


Request

Supplier(Tier 2)

Shipyard(NBs, repair,

conversions)

Request

MD

SDoC

Supplier（Tier 1)Submit

Owner

Recert: 5 years

SRF*

Preparation of IHM for New Ships

Information from Supply Chain (MD & SDoC)

MD

SDoC

MD

SDoCMD

SDoC

Submit

MD

SDoC

MD

SDoC

MD

SDoC

MD

SDoC

MD

SDoC

* SRF: Ship Recycling Facility

Material Declaration & Supplier

Declaration of Conformity


Planning ahead: Identify Ship Recycling Facilities

IMO – Authorization* of Ship Recycling Facility incl.:

• Occupational Health and Safety

• Environmental Protection measures / monitoring

• Training of Personnel

• Handling of HazMats

• Provision of PPE

• Pre-demolition activities (e.g. asbestos removal)

• Disposal Arrangements (sub-contractors)

ISO 30.000 series for ship recycling

ISRA members

(Intl Ship Recycling Association)

*Guideline under development, adoption by IMO estimated to take place at MEPC.62, July 2011


Which Facilities are prepared? (www.ISRA-dis.com)

• Jiang Xiagang Changjiang Shiprecycling Yard (China)

• Zhongxin Ship Recycling & Steel Co. (China)

• Jiangmen Yinhu Shipbreaking (China)

• Cemas (Turkey)

• Leyal Ship Recycling (Turkey)

• Simsekler Group (Turkey)

• Demtas (Turkey)

• Avsar Gemi Sokum Sanayi Dis Ticaret Ltd. Sti. (Turkey)

• Sparrows Point Shipyard (USA)

• Scheepssloperij Nederland BV (Nederland)

Plus other Candidate and

Associated Members


More info on Ship Recycling

www.gl-group.com/shiprecycling


Germanischer Lloyd and Global Marketing Systems

Introducing GSRP – Green Ship Recycling Program

Created with a view to upcoming IMO Regulations and Guidelines

established by Intertanko

ICS

Intercargo

Bimco

ITF

ITOPF

OCIMF

IPTA


Contact / more information

Henning Gramann

Global Head of Practice – Ship Recycling

[email protected]

Stephen Gumpel

Area Manager North and Central America

[email protected]


Know what's inside your ship!

Thank you for your attention

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